Olympia poised for tax hikes

  • The Associated Press
  • Monday, April 12, 2010 12:01am
  • News

The Associated Press

OLYMPIA — Taking a significant step toward adjourning their special session, top Democratic lawmakers said Sunday they had reached agreement on a plan to balance the state’s $2.8 billion budget deficit.

“We have go-home plans,” said Senate Majority Leader Lisa Brown, D-Spokane, who said she also expects enough votes to approve a new $800 million tax package.

House Democrats confirmed a budget deal, which includes the operating budget that runs through June 2011 and a separate plan for construction spending.

Details on the operating budget were expected today, after the full House and Senate Democratic caucuses were briefed on the package.

Tuesday is last day

The 30-day special session’s last day is Tuesday.

In addition to roughly $800 million in tax hikes, Brown said the budget would count on about $500 million in federal money.

It was unclear exactly how much of the solution would be covered by spending reductions and one-time accounting maneuvers, such as transfers from off-budget accounts.

Brown said around $500 million would be left in reserve.

The budget-balancing deal had been expected to fall into place after last week’s release of the roughly $800 million tax package.

That had been the biggest roadblock keeping majority Democrats from finishing their budget work and finally adjourning.

Gov. Chris Gregoire, also a Democrat, was forced to call the special session after majority Democrats were unable to wrap up their mammoth budget work during the regular two-month work session.

Gregoire has said she won’t call lawmakers back for another extensive overtime period.

School energy efficiency

An additional piece of the Democrats’ special-session endgame emerged Sunday with the unveiling of an updated plan to bankroll energy-efficiency upgrades at public universities and K-12 schools.

The measure would ask voters to approve about $500 million in bond sales, with the money dedicated to retrofitting and renovating aging school buildings.

A sales tax on bottled water purchases would be extended to help finance the projects.

Rep. Hans Dunshee, D-Snohomish, said the bonds would end up costing about $900 million over roughly 25 years, once interest is added. But he said the energy savings to schools — which rely on the state for financing — would amount to about $130 million per year.

“You get savings in two ways: The energy savings and the extension of the life of the buildings. You also get better schools,” Dunshee said.

The measure was endorsed Sunday by the Senate Ways and Means Committee, and Democrats expect it to be approved by the full Legislature before the special session expires.

Minority Republicans, however, were skeptical of the measure’s promised energy savings and said they worried about adding more to the state’s debt load.

Gregoire had requested that lawmakers come up with some kind of jobs plan during the special session, and the energy-upgrade projects could satisfy that request.

Dunshee estimates roughly 30,000 construction jobs if the projects are approved.

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